There have been lots of arguments on the subject of dropshipping vs print on demand business over the years. While some people claim that running a dropshipping business is much better, there are those who support print on demand biz. If you are planning to own an online store, there is a very chance that you must be confused.
This article will be explaining everything you should know about dropshipping vs print on demand. While both options are highly profitable, they are very different. Don’t worry because we are about to explain these differences. In the end, you will know which business models to adopt.
Understanding Print on Demand vs Dropshipping Model
Dropshipping is a business model whereby you’re selling products but don’t keep their inventory. In other words, the storage and shipping of such products is taken care of by its manufacturers. While customers may place orders on your site, the order fulfilment is taken care of by manufacturers/wholesalers.
Here is an example to enable you understand better. You have a store that sells phones online. If someone places order for any of your products, you don’t have to bother about the shipping process. This is because it will be handled by your dropshipping suppliers.
It means that you as the “retailer” will neither see nor touch the product. In this ecommerce business, your focus is to sell as many products as possible that are listed in your store. This is because the wholesaler or manufacturer of such products will do the heavy lifting.
Print on demand is a different business model entirely. This is because you will be selling customized products. There is no need for inventory management since goods are only produced when there is an order. One of the reasons why this biz has become very popular in recent times is its high profit margin.
Here is a clear example of how a typical print on demand biz works. You create an online store displaying certain products. These could be books, mugs or t shirts. The manufacturer of such products will only produce them whenever your customers place orders. It is a perfect business if you plan to deal in custom products.
In other words, you sell products that come with their own custom designs. This business mostly operates on your partnership with a print on demand service provider. Such company will take care of shipping and other logistics while you think about marketing the products.
Key Differences Between Dropshipping and Print on Demand
Now that you’ve understood what dropshipping & print on demand businesses both entail, it is high time we looked at their distinct features.
Product Customization
This is probably the first area where a drop shipping business seems to be different from print on demand services. For instance, dropshipping models do not require that the products are customized. In other words, products are available in standard designs. As a dropshipper, you can select from different product categories to start selling. However, note that there are limited customization options. You don’t need a printing company to operate a drop shipping biz smoothly. Products will be shipped in the default forms by dropshipping suppliers.
On the other hand, a high level of customization is required in print on demand business model. In most cases, your products will be customized before they are shipped to customers. Some of the products that suit this business are t shirts, posters, cards, and more. As a retailer, you can easily create custom designs on these items whenever customers place orders.
Print on demand is all about giving your products custom designs. Simply put, every product has its own custom designs. Dropshipping business models is all about selling the same products. Even if there is customization, such is highly limited.
Inventory Management
It is crucial to understand how inventory is being managed whenever you are analyzing print on demand vs dropshipping. For instance, the seller in dropshipping doesn’t keep hold of stocks. Once orders are placed on your own website, you as the retailer will then purchase the same products from a third-party supplier. You don’t have to worry about inventory management in this business as such is handled by your supplier.
Print on demand is quite similar to dropshipping businesses since you don’t maintain any physical inventory. The only difference is that in print on demand, the seller must pay more attention to the inventory. For instance, he would want to ensure the custom products align with his own brand. Again, he will need to keep track of products available for printing. Of course, this means paying attention to the printing process.
You can see that both are slightly different in this aspect even though you won’t stock physical products. However, print on demand is an ecommerce business model that requires you to pay close attention to how the products are being customized. This is because you want your own designs on such products.
If you are searching for the ideal business model, ensure to take all of these into serious consideration.
Branding Opportunities
When it comes to branding opportunities, print on demand and dropshipping business model are different. In dropshipping, you are selling generic or standard products. That is to say, they don’t have your company’s brand or logo. Thus, there is limited or zero customization. In this business, retailers only need to create their online stores and write great/compelling product descriptions to sell products.
However, print on demand is different. This is because as a retailer, you can have products customized. Many online stores use this business model to offer a more personalized customer experience. For instance, you don’t just sell t shirts straightaway to customers. Instead, such items can be branded with slogans, logos or even artworks.
With a typical POD business, you have the chance of creating your own brand identity despite not being the manufacturer of the product you’re selling. This can bring about customer loyalty in the long run.
Based on these explanations, you can see that dropshipping and print business aren’t the same. It doesn’t matter which option you decide to choose though. This is because you will generate sales in high volume with the right advertising skills.
Advantages of Dropshipping
Low Startup Costs
This is probably why many online stores are operating these business models today. Do you have limited budget? The truth is that custom products and custom packaging can cost you more. This can prove very risky if you’re just starting out.
Dropshipping model stands out because the cost required to get started is very minimal. Just set up your store and start accepting orders. Do you want to know the best part? It is the fact that there are lots of ecommerce platforms that offer free trial for setting up online stores.
Wide Product Range
Dropshipping products is a business that has been very successful over the years. This is because you have the chance to sell different categories of products. There is absolutely no limitation as to what can be sold on your online stores. For instance, you can decide to list thousands of items on your store. This makes it one of the best online businesses anyone can delve into.
Imagine being able to offer different items. It means you can easily generate sales 24/7. This can lead to massive profits in the long run.
Easy to Scale
The dropshipping products remains one of the most recommended online businesses for people who want to be successful within a short space of time. This is because it has very huge growth potentials. For instance, you can easily setup different online stores that cater to various markets. All of these can be done with the clicks of few buttons.
Unlike dropshipping, print on demand is a business model that requires lots of efforts and time. This means you may likely struggle to scale since communication with your print on demand suppliers is crucial. It is more complicated than you are thinking.
Advantages of Print on Demand
Unique Products
This is one area where dropshipping and print on demand products seem to be different. If you want to sell customized products that customers would consider as “unique”, this is the ideal business model. Imagine your products having custom designs. There is no better way to stand out from the crowd.
Studies have shown that selling products that are “the same” to those of competitors can hurt your sales. This is because your target customers can consider them as generic. However, print on demand products help to ensure you are offering something unique. With the right retail price, your printing company can experience more sales since its products are unique amongst others.
No Minimum Order Requirements
Sometimes, you may be required to meet the MOQ (minimum order quantity) of a dropshipping supplier. This means you will have to make bulk orders. Such can affect your business especially when you have limited finance. In the end, your profit margins can take a hit.
However, print on demand products don’t require such conditions to be met. For instance, a POD business gives sellers the chance to print the quantity of items they want. This makes it recommended for startups due to its minimal risks. Another benefit is that your business can easily adapt to the ever-changing trends of a market.
Creative Freedom
With a print on demand company, the sky is your limit. Imagine being able to create custom products and designs for your online store. If you’ve got artistic vision, this business model can help you bring such to reality. Print on demand business has been known to bring about creativity as well as innovation.
This is due to how it encourages companies to look for the most unique ways to offer their products to customers.
Challenges of Dropshipping Store
High Competition
When talking about dropshipping vs print on demand biz, it is almost impossible to ignore the level of competition you will face. This is true in the case of dropshipping whereby almost everyone is selling similar items. If you’re a newbie, you must come up with the right strategies to succeed.
When there is stiff competition among dropshipping companies, such can bring about low profit margin. This is because most sellers may want to lower their prices in order to attract as many customers as possible. The bottom line is that you will likely struggle in this ecommerce business since high competition can lead to competitive prices.
Quality Control Issues
It has been discovered that the problem of quality control isn’t considered when many people are discussing dropshipping vs print on demand. Your success in this business model will be greatly determined by product quality. Therefore, it is crucial to ensure your customers are getting nothing short of the best.
There are lots of variables to consider with regards to product quality. These are dispatch order errors, substandard products, and insufficient inventory levels. The major reason for challenges like these is that your dropshipping supplier ships products directly to customers. Therefore, you don’t get the chance to monitor what has been shipped.
Limited Branding
In a typical dropshipping store, your products are not branded. In other words, they are generic. It doesn’t support custom packaging. The implication of this is that you can’t create a brand that customers will find unique. If you’re starting out, you would want to choose a product and begin to sell.
However, it will get to a point whereby you want such products to look different in the market. This is where you may have issues with drop shipping. Branding is either limited or non-existent.
Challenges of Print on Demand Products
Longer Fulfillment Times
This is one of the major drawbacks of print on demand business. It is a great idea to talk about having your own brand on products that you’re selling. However, note that this process takes time to complete. Most print on demand companies struggle to deal with this issue.
For instance, shipping times usually take between 1-6days. However, it could be more since custom products will have to be delivered to customers. If you are partnering with an inexperienced company that renders print on demand services, your business may suffer.
Higher Production Costs
Print on demand model is expensive to run successfully. This is because every product being sent to customers has been customized. For instance, a printing company may decide to charge some extra fees to put your logo on products that are being sent to your customers. This can affect your business negatively in various ways.
For example, you may decide to charge customers higher than required. This will further impact your profit margins. If customers can find dropshipping companies with decent product quality and low shipping costs, they may not patronize your online store again. Of course, they are looking for ways to save money.
Reliance on Design Skills
If you want to succeed in a print on demand model, it is crucial to have great design skills. This is because the goal is to paint the picture of your brand on the mind of target customers. This can take precious time and resources that could have been devoted towards marketing your products.
Sometimes, you may need to hire the expertise of a design expert. Again, this leads to additional cost incurred. Due to this, it is easy to conclude that selling print on demand products is not recommended for newbies. This is because it can put a hole in your pocket.
Choosing the Right Model for Your Business
When it comes to comparing dropshipping vs print on demand business, there is something you must know. This is the fact that these models have their advantages and disadvantages. In other words, both dropshipping and print on demand businesses come with their challenges.
Therefore, you must consider some important factors to know the best model that will be perfect. Below are some variables to consider while deciding on whether to start a dropshipping business or print on demand outfit.
Assessing Your Strengths
The mistake most people make is looking at profitability to decide which biz model they can choose. In the end, they prefer the business that looks promising in terms of higher profit margins. This is a recipe for failure and struggle. For instance, it is true that print on demand biz is very profitable. However, there are some questions you need to ask before starting it.
These could be “Do I have the design skill required for this business?”, “Can I constantly keep up with checking up on inventory?”, “Do I have the financial strength for this business?”. Asking questions like these can help you identify your strengths as well as weaknesses.
Don’t choose something that you aren’t passionate about. This can negatively impact your profit margin eventually.
Understanding Your Target Market
Have you ever taken time to research your target market in a bid to know what they would be willing to buy? Do you know that this is the first step towards success in both dropshipping and print on demand models? Is creating a custom product important in the market? The last thing you want to do is take shots in the dark because you may end up choosing the wrong model.
It is crucial to find out more about your target market. This is because in some markets or niches, adopting print on demand concept is not required. For instance, if you are planning to sell mobile devices like smartphones and tablets, there is no need to put your logo or brand on such products. Attempting to do so will only lead to unnecessary additional cost incurred.
Print on demand is only recommended for custom products like mugs, books, cards, and t shirts. If you want the best profit margin, it is always recommended to find out what suits your market. Do not make the mistake of choosing print on demand model just because some experts claim it is very profitable.
Considering Long-Term Goals
This is another crucial factor to consider when comparing drop shipping models and print on demand business. It is all about the vision and mission of your business. For instance, you need to specify the long-term goals of such biz. If you’re thinking about building a brand that will last for years to come, partnering with print on demand suppliers won’t be a bad idea.
However, if you are interested in selling high quality products in the market, drop shipping models are the best options to explore. This is because you can sell as many products as possible without bothering about branding.
In general, dropshipping helps you scale easily than print on demand model.
Integrating Both Models
It is possible to use both dropshipping and print on demand models at once. This shows that you can adapt to the ever-evolving market conditions. Also, such strategy can help you meet the diverse needs of your target market without compromise. For instance, there are people who may not have issue purchasing generic products. On the other hand, some of your potential customers may prefer custom products. Given such diversification, you have the chance to boost sales and revenue.
It is all about knowing which model can bring the expected results at different periods of time for a higher profit margin. Also, ensure that you are working with the right dropshipping suppliers and print on demand suppliers. That is to say, always partner with reliable third party suppliers for long term success. There is no better way to provide more personalized customer experience than these models.
Benefits of Hybrid Approach
The hybrid approach brings lots of benefits to ecommerce business owners. Let’s assume you have a huge database of customers. It is only natural that these people have different needs and expectations. While some may be willing to spend on standard items, others may prefer bespoke solutions.
Using the hybrid approach makes your business more competitive. This is because you have the ability to serve the interests of different categories of customers. Thus, there is no need trying to compare print on demand vs dropshipping model. Just ensure to know the right time when each model can be used. These are two highly profitable business models you can take advantage of.
Managing Multiple Third Party Suppliers
If you’re running print on demand and dropshipping models, it is important to understand how multiple suppliers can be managed. For instance, communicate with them to lower shipping costs for customers that make bulk orders.
Also, try to find out about their inventory management as well as other policies. As simple as these may sound, they can determine the long-term success of your business.
You can use software to automate the process of order and inventory management. Such tool should have features to easily compute product prices, shipping costs and possible discounts. This can make the management of different dropshipping suppliers as well as POD suppliers easy.
Marketing Strategies
Without the right marketing strategies, you may struggle to breakeven while running dropshipping and print on demand business models. For a start, you can advertise products on social media platforms like YouTube, Facebook, X and Instagram. One way to engage your target audience is showing them a demo of your product.
Furthermore, offer seasonal discounts to boost sales. You can even decide to reduce their shipping costs to encourage more orders. Finally, use search engine optimization to boost traffic to your ecommerce store. Although this may require time and patience, it is worth all the hassle.
Conclusion on print on demand vs dropshipping
It is clear that drop shipping and print on demand business models are quite different. To choose the right option, you need to consider factors like your target market, strength and long-term goals.
Don’t forget that these two models can be used together in a business. Such decision can bring about lots of benefits such as higher profit margin, long term business success and opportunity for expansion.
It is also crucial to promote your business the right way for better conversions. This can be done through social media platforms and SEO.
FAQs on Print On Demand vs Dropshipping Model
What are the main differences between dropshipping and print on demand?
In a dropshipping business, generic or standard products are sent to customers after they’ve placed orders. In print on demand, customized products are shipped to customers. Such items will carry your brand or logo.
Again, you don’t have to worry about inventory management in a dropshipping biz. However, such isn’t the case in print on demand.
Which business model has lower startup costs?
Dropshipping businesses have the least startup cost. In print on demand, your own custom products are shipped to customers. This can cost you extra.
How do fulfillment times compare between dropshipping and print on demand?
Unlike dropshipping, the fulfilment times for print on demand is longer. This is because you’re selling products that need to be customized.
Can I combine dropshipping and print on demand in one store?
Yes, of course. It is all about identifying which model fits different target audiences. There are lots of benefits when they are combined. These could be high profit margins, long term business expansion, and more. Just ensure to sign up with the right print on demand and dropshipping suppliers. They are both profitable business models.
What skills are essential for success in dropshipping and print on demand?
First, you need to identity hot-selling products that people are willing to buy. Again, you need advertising skills to stand out from the crowd. All of these can help you become successful.
